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Amazon’s Expansion: How will it Affect Your Property?

 

Amazon's Expansion: How will it Affect Your Property?

I f recent expansions are any indication, Amazon is getting serious about their package delivery. The company has been opening new package delivery centers and investing in their own fleet of Prime-branded cargo jets, along with exploring a new delivery program that pays its current workers to quit their jobs and start package delivery businesses.

But aside from the way Amazon is delivering the goods to their customers, there will also likely be changes in the way these packages are received by property managers.

For multi-residence properties, Amazon’s tracking package app only shows it’s been delivered to a front office or receiving area. From there’s it’s anybody’s guess as to where the package really is.

Let’s look at Amazon’s recent ramp up in its delivery division and what property managers may be able to expect moving forward.

The True Cost of Two-Day Shipping

Since its inception in 2005, Amazon Prime’s most touted selling point was the free two-day shipping it offered its members on Prime-eligible items. For just $79 per year (at that time), members could place as many orders as they wanted and get their goods delivered within 48 hours. The service was an instant hit and now has more than 100 million members in the United States alone.

Studies show the average Prime member spends $1,400 per year, compared to average customers that spend just $600. The benefits of being a member have certainly brought big business to the company— so much so, in fact, that the company is turning the logistics and delivery industry on its head.

To combat high shipping costs and be able to continue delivering on the increasing demand of Prime goods, Amazon is pioneering ways to provide a more internal experience, something that no other company to date has ever done.

Earlier this year, the company announced its plans to offer a monetary incentive of $10,000 to eligible employees who wanted to quit their jobs and start delivery packages for the e-tailer. They can use the money to invest in vehicles, uniforms, package tracking scanners, and all the equipment they need to run a successful delivery service. And, given that current employees are already familiar with the company, its values, and its expectations, Amazon will likely find a higher success rate in scaling their logistics network.

The company is also expanding its air presence with an anticipated 70 freighters by 2021. With a newly established footprint in Anchorage, it’s bridging gaps between remote places that otherwise complicate deliveries.

The idea isn’t for Amazon to put traditional logistics providers like UPS and Fedex out of business. Rather, the goal is for Amazon to gain better control over their delivery times and methods without having to purchase trucks and hire workers. They contract with the newly established delivery service businesses and avoid paying benefits, employment taxes, and other overhead.

The Amazon Prime program has expanded into a global phenomenon, and its large-scale presence is leading the charge for improving their package delivery system.

The Push For Better, Faster Last Mile Delivery

The “last mile” is the final leg of a package’s route. Once it reaches the delivery station, the next destination is the customer’s home or business. Or, in the case of a multi-unit property, packages often end up in the front office.

It’s clear that Amazon wants to improve the speed and efficiency of its final mile delivery, but the transportation is just part of the equation. Once the package reaches the property manager’s office, it’s still not technically at its final destination.

Amazon’s tracking package app will show the package as delivered, and once this happens, the package is off the grid. Property managers can fill in the gap with their own tracking package app that continues to monitor the package’s progress until its owner comes to claim it.

It’s a significant improvement in final mile logistics that will play an increasing role as Amazon ramps up its own delivery expansions.

How Property Managers Can Prepare

If you’re like most properties, you see an endless pile of packages coming into your office every day. Online shopping isn’t just a passing fad, it’s become just as much a part of daily life as going to the supermarket. And as the number of packages being shipped each day increases, you and your staff will need a better way to sort and distribute them.

Where final mile challenges are abundant, Notifii Tracking is filling in the gaps. Our tracking package app slashes the time it takes to log deliveries and notify tenants from minutes to seconds per package. You and your team gain better control and accountability over every delivery and accelerate pickup times. And, when your residents get their important packages in their hands on time without hassle, you look good in the process.

See how Notifii works - schedule a free demo and discover how you can simplify your residents’ package delivery experience no matter how much they shop online!